What is Mortgage Loan?

Mortgage loan, also known as home loan (or housing loan), is the process of getting a loan from a bank by pledging the property as collateral to the bank. The title deed of the property will be safe held by the bank. Upon full repayment on the home loan, the title deed will then be return to the owner.

A must have asset under retirement portfolio will definitely be a property or should I say – properties. This concept has made mortgage very popular. Many adopt the “Buy and Rent” strategy – they took maximum home loan to buy a property and rent it out. With the current low interest, the rental income usually comes out to be more than the monthly installment. Thus, it is like “free financing” on the property as someone else is paying for your installment. This is also one of the secrets of how the rich get richer and the poor get poorer.

Different type of Mortgage

  1. Fixed rate mortgage
  2. Floating rate mortgage
  3. Sibor pegged mortgage
  4. Sor pegged mortgage
  5. Cash Rebate mortgage
  6. Interest Offset mortgage
  7. Interest Only mortgage
  8. Reverse mortgage
  9. Equity Loan mortgage
  10. Refinancing mortgage

Leave a Reply

Your email address will not be published. Required fields are marked *